Hamden officials negotiating with Laurel View golf operators on future of the course

By Clare Dignan
| on February 22, 2018

Photo: Hearst Connecticut Media File

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HAMDEN — An ongoing action by the town against MDM Golf of Laurel View has moved out of court and the fate of golf at the country club is being negotiated.

It’s the next step in an eviction process the town began when MDM Golf LLC, owned by Matthew Menchetti, allegedly failed to pay a number of expenses for operating the course at Laurel View Country Club.

“We’ve been working very hard to negotiate a solution that is in the best interest of Hamden, financially, and practical for golfers, one which won’t leave us paying money we don’t have for a more expensive golf vendor, which is the case in most every municipal course arrangement,” Mayor Curt B. Leng said. “We are fortunate to not have a payment to a golf vendor, no expense for course maintenance, no expense for golf cart purchase or lease or the expense of personnel to keep the course open and conditions playable.”

In early 2017, MDM Golf LLC was served papers charging that rent and utilities hadn’t been paid and Menchetti had not lived up to the conditions of MDM’s contract with the town. A judge recently dismissed the case from court, which was due “solely to the amount of time that’s transpired,” Leng said.

Attorney Stuart Margolis, representing Menchetti, said the parties are working outside of the courts to resolve the claim.

“It makes more sense for people to work together to find a solution,” he said. “What MDM Golf is interested in is having a structure where the banquet is a top notch event space.”

Margolis said “MDM golf has been working diligently with the town to come to a resolution of past issues and put together a working relationship.” In response to why rent and other expenses allegedly had not been paid, Margolis said there were concerns about the whole banquet facility. “They’ve had a major impact on the operations of the golf course,” he said. “Unfortunately from MDM’s perspective they have invested very substantial sums over long period of time. The town has been understanding as to what the issues have been and what the problems have been and been receptive as to what might work as a solution going forward that would be beneficial.”

While the town has had meetings recently with MDM to discuss solutions to the conflict, Leng said “the town has not made any final decision regrading refiling the action.”

“We’re interested in finding an agreement that’s in the best interest of the town,” he said.

Margolis said MDM is “absolutely” still interested in continuing to operate the course at Laurel View.

Throughout the time it has been working with the town, MDM has paid the town more than $3 million, and made major physical improvements to the course, Leng said, but he is not aware of any issues now that would be affecting the operations of the banquet facility.

“It’s important to have an operational banquet but we’ve had one for the last year and I’m sure that’s a reason the golf course has had a successful season,” Leng said. The town signed a short-term contract last year with Mickey’s Restaurant to operate the 19th Hole restaurant and the banquet facility at the club and Leng said the owner has expressed interested in extending it.

The town filed a complaint last year against MDM Golf of Laurel View LLC alleging the nonpayment of rent, utilities and services and failure by MDM to pay personal property taxes. It alleged that MDM had failed to pay rent in October, November and December in 2015 and in months May through November of 2016. As of December 2016, MDM allegedly owed the town $85,000 in rent, late charges and interest; $132,430 in utilities; and around $4,500 in other expenses associated with operating the course, according to the eviction action.

Leng said MDM paid major utilities and operating costs for the course in 2017, such as the water bill, and the town covers some utilities that are shared between the golf course and the banquet facility.

“Recovering funds owed to the town has been a major component of the lawsuit,” Leng said. “We’ve made progress and I am cautiously optimistic. My goal here is to provide our residents with a municipal golf course as a Hamden amenity and to not have it cost the town more money, especially at a time when we’re working so hard to cut costs and create efficiencies across government.”

Before Laurel View was privatized in 2000, the town had a $300,000 annual net operating loss to run it, which would probably be close to $500,000 today, Leng said. To keep the course open without MDM or any other operator running it would mean the town paying the workers and for the fertilizers, irrigation system and the cost of all the utilities.

“Throughout the budget we’re looking to reduce costs, not add costs, so depending on how this shakes out it could me having or not having golf at Laurel View,” Leng said. “And that’s not an exaggeration.” He added he likes being able to offer golf and not having the town pay utility expenses and that makes the eviction action a complicated issue.

“We won’t settle on any eviction action until every penny of the eviction action is paid,” Leng said.